According to Mehmet Şimşek, the rise in foreign exchange is 'temporary'

Treasury and Finance Minister Mehmet Şimşek made a post in English on his X (Twitter) account regarding developments in the economy.

Evaluating credit rating agency Fitch's decision to revise Turkey's credit outlook from stable to positive, Şimşek also touched upon the volatility in the foreign exchange market.

Stating that "the recent volatility in the foreign exchange market should be considered temporary," Şimşek said, "The CBRT is determined to anchor inflation expectations by using all the tools at its disposal. We will continue to tighten fiscal policy to help the CBRT lower inflation."

Stating that Fitch's upgrade of Turkey's long-term foreign currency credit rating and the revision of its outlook from neutral to positive "reflects the strength of Turkey's sound economic policies," Şimşek emphasized that they are determined to maintain current policies and implement structural reforms.

Stating that "achieving price stability remains our top priority," Şimşek included the following statements in the remainder of his message:

• The rebalancing process of growth is going quite well; domestic consumption is moderating and net exports are strengthening.
• The current account deficit is narrowing faster than expected and is on track to fall well below 3 percent of GDP this year.
• The share of Turkish lira deposits in total deposits has increased by 12 percentage points since August. This trend will continue as confidence in our program increases.
• Restoring fiscal health is also an important goal. Fiscal impulse is expected to decline later this year and revenue policies are expected to become more supportive. We are committed to reducing the fiscal deficit to below 3% of GDP next year, including earthquake-related expenditures.
• It is important to keep in mind that achieving price stability will take time. Following this month's local elections, Turkey will have a long period without elections to continue its medium-term program, which also includes reforms that will increase productivity and enhance competitiveness.
• In summary, the program we announced in September is working as expected.